The third quarter of this year opened with two strong months for the domestic equity market but finished with a less favorable month in September (the Russell 3000 Index returned 3.32%, 3.51% and 0.17% in their respective months for a total quarterly return of 7.12%). Large caps led the market: the mega-cap Russell Top 200 Index returned 8.38%, the Russell Midcap Index returned 5.00%, the small-cap Russell 2000 Index returned 3.58% and the Russell Microcap Index returned only 0.83%. The style results showed the Russell 3000 Growth Index returning 8.88% for the quarter, topping the Russell 3000 Value Index return of 5.39%. Last quarter, the Russell 3000 Growth Index had topped the Russell 3000 Value Index by even more but the entire growth advantage had been very narrow, driven by just the technology stocks in the mega-cap Russell Top 200 Index. This quarter, the advantage for growth stocks was broader and more consistent: growth led value by a similar amount in every one of Russell’s capitalization ranges.

Performance

Federated MDT Large Cap Value Fund Institutional Shares returned 5.96% in the third quarter of 2018, outperforming the 5.70% return of its benchmark, the Russell 1000 Value Index.

Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than what is stated. Other share classes may have experienced different returns than the share class presented. To view performance current to the most recent month-end and for after-tax returns, click on the Performance tab.

Click the Performance tab for standard fund performance.

Click the Portfolio Characteristics tab for the fund’s top 10 holdings.

Performance Contributors

Stocks with analyst conviction that was not low and prices not near 52-week highs

Security selection in Consumer Staples and Energy sectors

Sector selection in underweighting the Real Estate sector

Relatively strong performers overweighted by the fund: T-Mobile US Inc., Eli Lilly and Company and Royal Caribbean Cruises Ltd.

Performance Detractors

Stocks with a combination of strong growth, value and quality characteristics

The fund ended the third quarter roughly sector-neutral to the benchmark according to the GICS sectors, except for an underweight in Real Estate (the fund does not hold REITs). Within the sectors, there was a significant overweight position in the insurance industry. There were underweight positions in the real estate, diversified financials and media industries.

Key Investment Team

If this is distributed in hard copy, it must be accompanied by a copy of the Performance tab.

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.

Mutual funds are subject to risks and fluctuate in value. Click on Performance for fund specific risks.